Equinor becomes second largest shareholder of leading Danish renewables firm

NORWEGIAN energy company Equinor has bought a 10% stake in Danish multinational Ørsted, one of the world’s largest renewable energy companies.

The stake, worth US$2.5bn, will make Equinor the second largest shareholder in the company behind the Danish government which owns around 50%.

Equinor expects the deal to bolster its offshore wind portfolio, which Ørsted has a stronghold in, particularly in the North Sea.

Anders Opedal, CEO of Equinor, said: “The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition.”

Offshore wind

The offshore wind sector in Europe is facing growth challenges due to a lack of grid connections and a shortage of capable suppliers, according to a recent report from energy solutions firm Aggreko.

Surveying 855 leaders in the European offshore industry, access to power during the construction phase and costs emerged as barriers to increasing offshore wind projects.

Ørsted, which currently has 8.2 GW of installed offshore wind capacity, recently delayed its offshore wind project in the US by a year to 2026, causing a potential financial blow of around US$472m, reports The Guardian.

Equinor's confidence

Opedal said that Equinor’s investment in Ørsted is in line with its value-driven growth in renewables.

He added: “Equinor has a long-term perspective and will be a supportive owner in Ørsted. This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets.”

The company currently has a renewables capacity of 0.9 GW and aims to install a net capacity of 12–16 GW of offshore wind by 2030, saying its portfolio has a potential to produce 35–60 TWh in 2030.